The Organization for Economic Cooperation and Development (OECD) raised its global economic growth forecast from 2.6% to 2.7% and its growth expectation for the Turkish economy from 2.8% to 3.6%.
The “June Economic Outlook Report” of the Organization for Economic Cooperation and Development (OECD) has been published.
Emphasizing that the global economy is going through a turning point, the report warned that the global economy faces a “long road” to reach sustainable growth.
The report stated that falling energy prices, declining inflation rates, alleviation of supply bottlenecks, the reopening of the Chinese economy after COVID-19 and strong employment contributed to the economic recovery.
Core inflation, excluding energy and food prices, was higher than expected and higher interest rates were increasingly felt, particularly in the real estate and financial markets, the OECD report said.
Emphasizing that the supportive fiscal policies of governments play a vital role in supporting the global economy against the shocks of the COVID-19 epidemic and the Russia-Ukraine war, the report stated that most countries are facing higher budget deficits and higher public debt today.
In the report, it was noted that signs of stress began to appear in some financial markets as investors reevaluated risks and conditions for obtaining loans tightened.
2023-2024 growth projections
The report also included OECD’s economic growth projections for 2023 and 2024.
The 2023 global real economic growth forecast, which was announced as 2.6% in the “March 2023” report, was increased to 2.7% in the latest report due to the decrease in inflation and China’s lifting of the Covid-19 restrictions. The growth forecast was maintained at 2.9% for 2024.
The growth forecast for the Turkish economy, which was announced as 2.8% in March for this year, was increased to 3.6% in the report published today. It was stated that domestic demand will continue to be the main driver of Turkiye’s economic growth. The growth forecast of the Turkish economy for 2024 was also reduced from 3.8% to 3.7%.
In the report, it was predicted that inflation in Turkiye will be 44.8% this year, 40.8% next year, and the unemployment rate will be 10% this year and 9.9% next year.
The OECD increased its 2023 growth forecast for the US economy and the Chinese economy by 0.1 percentage points to 1.6% and 5.4%, respectively.
It was noteworthy that the organization sharply lowered the outlook for Germany. The growth expectation for Germany was lowered from 0.3% to “zero growth”.
Source: Trthaber / Prepared by Irem Yildiz